Issue - meetings

Further to Minute No. 32 of the meeting of the Cabinet held on 4th July, 2012, consideration was given to a report presented by Andrew Bedford, Strategic Director of Resources, and Councillor Akhtar, Deputy Leader, which detailed how in 2011/12 the Council budgeted to spend £219.622m on its General Fund Revenue Account.  Actual spending for the year was £217.618m, a saving against budget of £2.004m (or -0.91%).  Of this, £0.494m was accounted for by surpluses on trading accounts, leaving a net underspend of £1.510m.

In addition, the Delegated Schools’ Budget was £178.127m. Actual spend against this was £173.596m, an underspend of £4.531m for the year which had been added to Schools’ Reserves which at 31st March, 2012 stood at £7.654m. 

The Housing Revenue Account in 2011/12 was budgeted to make a contribution to the HRA General Reserve of £4.613m. Actual contribution to this Reserve was £5.555m - (£0.942m additional contribution).

This was a very positive outturn position, especially given the challenges faced in-year, not least on the Children and Young People’s Services Budget.  It was a result of the hard work of both Elected Members and staff in managing reducing levels of funding at a time of increasing Service need and also the generally good financial management on the part of budget holders.

Reflecting the above out-turn position, and assuming the recommendations in the report were approved, the Council’s Revenue Reserves as at 31st March, 2012 were General Fund Reserves available and uncommitted to support the Budget £7.494m and Earmarked Reserves (including Schools and HRA Reserves) £42.998m.  

The Commission welcomed this report, and asked a series of questions relating to capacity and risk and whether the budget could still deliver the spending reductions, concerns about the underspends on the Delegated Schools Budget, confidence in the delivery of the budget and the public’s perception, use of resources freed up by accounting opportunities, the holding of reserves to support the General Fund Revenue Budget, details on earmarked reserves – some of which were included in the full Statement of Accounts and the detail on how this was comprised and the 0.91% less than budget spend on the General Fund.

Resolved:-  (1)  That the Council’s General Fund, Schools’ and the Housing Revenue Account (HRA) Revenue Outturn Position Statements for 2011/12 be noted.

(2)  That the level of the Council’s Revenue Reserves as at 31st March, 2012 be noted.

(3)  That the carrying forward of underspends on Trading Services  (£493,719) and requests for carrying forward of specific items (£482,852) in accordance with the Council’s approved policy be noted.

(4)  That the waiving of the Council’s policy of carrying forward 20% of the underspends from 2011/12 and agree the supplementary allocation of £875,000 to support Children’s Services in 2012/13 be noted.

(5)  That further information be provided on the Council’s earmarked reserves as at 31^st March, 2012 and the compositions.

(6)  That the budget process continue to be monitored by this Select Commission.

-        Strategic Director of Resources to report.

Councillor Akhtar, Deputy Leader, introduced a report by the Strategic Director of Resources, which detailed how in 2011/12 the Council budgeted to spend £219.622m on its General Fund Revenue Account.  Actual spending for the year was £217.618m, a saving against budget of £2.004m (or -0.91%).  Of this, £0.494m was accounted for by surpluses on trading accounts, leaving a net underspend of £1.510m.

In addition, the Delegated Schools’ Budget was £178.127m. Actual spend against this was £173.596m, an underspend of £4.531m for the year which had been added to Schools’ Reserves which at 31st March, 2012 stood at £7.654m. 

The Housing Revenue Account in 2011/12 was budgeted to make a contribution to the HRA General Reserve of £4.613m. Actual contribution to this Reserve was £5.555m - (£0.942m additional contribution).

This was a very positive outturn position, especially given the challenges faced in-year, not least on the Children and Young People’s Services Budget.  It was a result of the hard work of both elected Members and staff in managing reducing levels of funding at a time of increasing service need and also the generally good financial management on the part of budget holders.

Reflecting the above out-turn position, and assuming the recommendations in this report were approved, the Council’s Revenue Reserves as at 31st March, 2012 were General Fund Reserves available and uncommitted to support the Budget £7.494m and Earmarked Reserves (including Schools and HRA Reserves) £42.998m.  

Resolved:-  (1)  That the Council’s General Fund, Schools’ and the Housing Revenue Account (HRA) Revenue Outturn Position Statements for 2011/12 be noted.

(2)  That the level of the Council’s Revenue Reserves as at 31st March, 2012 be noted.

(3)  That the carrying forward of underspends on Trading Services  (£493,719) and requests for carrying forward of specific items (£482,852) in accordance with the Council’s approved policy be approved.

(4)  That the waiving of the Council’s policy of carrying forward 20% of the underspends from 2011/12 and agree the supplementary allocation of £875,000 to support Children’s Services in 2012/13 be approved.